Experts suggest that amendments to the Land Law, Housing Law, and Real Estate Trading Law will effectively curtail real estate speculation and address inefficient land usage.
The updated Real Estate Trading Law now bars the transfer of land use rights within property projects in major urban areas for individual house construction. This measure aims to curb developers’ practice of parceling land within projects, a tactic that contributes to land hoarding and speculation, as explained by experts.
All real estate transactions are now mandated to occur through banks to prevent underreporting of transaction values to evade taxes by both buyers and sellers.
Beyond bolstering tax revenues for the government, this move sets the stage for a national real estate data system, enhancing market transparency, curbing speculation, and mitigating price inflation, experts emphasized.
The legislation will increase taxes and land use fees for delayed or unoccupied real estate projects, anticipated to accelerate property development and deter land hoarding practices.
Under the revised Land Law, only specific types of land are permitted for housing development. This measure aims to prevent developers from acquiring various land types, particularly agricultural lands, at lower costs, attempting conversion, and leaving them vacant if unsuccessful, which results in resource wastage.
According to the new provisions, a land plot must have at least one square meter zoned for residential use for project commencement. Previously, developers could establish basic infrastructure like sewage systems and electricity on land, then subdivide and sell smaller plots to individuals, sidestepping full property development.